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Okay so I'm not a home owner (never have been) and I won't be for a few years but my husband and I still look ,were still young ,and not decided on where to live..we have looked at other states to live (we r in Fla) and my husband will always turn away a house with high prop taxes even if the home is in our price range. Are they factored into your Morgage? Okay ill give a hypothetical here and may someone would know an estimate on what I'd pay monthly.
So we saw a house in CT. ( also we want to go USDA loan so 100% financing and we will shortly be debt free in 3 months)
So
Home- $230,000
Prop taxes -$3,500 year
Do we add that into our morgage or do we pay one lump sum orrrr???? Sorry if the question seems stupid I've just always rented!
The property tax is set by the local government. It is based on your home's value, so the only reason a property tax would be higher is if one home is worth more than another.
You can pay the property tax in one lump sum out of your checking account once a year when it is due, OR
you can have your mortgage company set it up in escrow and the bank will send the payment in for you.
These are the most common methods, anyway.
Property taxes vary from city to city and state to state. Property taxes are VERY low where I live. They can add up over time in high-tax northeastern states.
What do you mean you will be "debt free in 3 months"? Three months from NOW? I don't personally recommend 100% financing for first-time buyers. You would do better to start saving for a down payment NOW. You also will need discipline to be able to pay that monthly mortgage payment. Plus insurance + utilities + home repairs + property tax.
The property tax is set by the local government. It is based on your home's value, so the only reason a property tax would be higher is if one home is worth more than another.
You can pay the property tax in one lump sum out of your checking account once a year when it is due, OR
you can have your mortgage company set it up in escrow and the bank will send the payment in for you.
These are the most common methods, anyway.
Property taxes vary from city to city and state to state. Property taxes are VERY low where I live. They can add up over time in high-tax northeastern states.
What do you mean you will be "debt free in 3 months"? Three months from NOW? I don't personally recommend 100% financing for first-time buyers. You would do better to start saving for a down payment NOW. You also will need discipline to be able to pay that monthly mortgage payment. Plus insurance + utilities + home repairs + property tax.
We will be debt free in 3 months from now yes... We are disciplined in all our monthly payments (havent been late on rent in 13 years). It was just a hypothetical set of numbers. We r undecided yet on when to buy (within the next 5 years though) so we have time to save we just wanted to get rid of all our debt so all our money was going towards saving.
We will be debt free in 3 months from now yes... We are disciplined in all our monthly payments (havent been late on rent in 13 years). It was just a hypothetical set of numbers. We r undecided yet on when to buy (within the next 5 years though) so we have time to save we just wanted to get rid of all our debt so all our money was going towards saving.
Also, you should know property taxes change from year to year. Deciding where to buy or not to buy solely based on tax rate could be a huge mistake. I've seen higher tax rates were services (and perks) are included and you actually come out ahead, just as I've seen low taxes where you get gouged on everything else.
Another consideration is just because on jurisdiction has low taxes does not assure you they will remain that way. Repeatedly, we see rural areas needing to increase taxes dramatically just to maintain basic services. Or we've seen a major employer come into an area, which in effect lowers the tax requirements and everyone's real estate taxes drop. The county I live in has cut taxes dramatically due to this exact situation........major employers selecting our area as their relocation destination.
But, I know what you are up against........once someone gets it into their head to focus on one facet, you could very easily be fighting a losing battle.
Okay so I'm not a home owner (never have been) and I won't be for a few years but my husband and I still look ,were still young ,and not decided on where to live..we have looked at other states to live (we r in Fla) and my husband will always turn away a house with high prop taxes even if the home is in our price range. Are they factored into your Morgage? Okay ill give a hypothetical here and may someone would know an estimate on what I'd pay monthly.
So we saw a house in CT. ( also we want to go USDA loan so 100% financing and we will shortly be debt free in 3 months)
So
Home- $230,000
Prop taxes -$3,500 year
Do we add that into our morgage or do we pay one lump sum orrrr???? Sorry if the question seems stupid I've just always rented!
Your yearly property taxes will be divided by 12 and added to your mortgage payment each month. Same goes for your homeowner's insurance. Each year when these 2 bills come due your lender will pay them on your behalf.
Most loans do not give you the option of paying the taxes yourself. Usually if you have a mortgage, the mortgage lender will insist on escrowing your taxes and home insurance so that they know the bills have been paid. Some will let you choose to not escrow, but they typically charge you a higher interest rate in exchange.
Conventional loans with a 20% down payment can be done without tax and insurance escrows. Depending on the credit score in play, there is a slightly higher rate - sometimes not at all, depending on the circumstance.
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